Bangkok--30 Jan--Bangkok Bank Bangkok Bank has introduced a new loan for SMEs in the automotive parts industry offering up to 100 percent of the purchase price of new machinery. The Bualuang SMEs-Machine Loan for the Automotive Parts Industry carries an interest rate of MLR for a term of up to five years. Bangkok Bank has allocated Baht 1 billion to meet initial demand for the new loan, reflecting the bank’s confidence in the auto parts industry which the government aims to establish as a manufacturing hub for exports to the region. Bangkok Bank Executive Vice President and Head of Metropolitan Commercial Banking, Virasak Suthanthavibul, said the Bualuang SMEs-Machine Loan for the Automotive Parts Industry can be used to purchase new machinery for capacity expansion, efficiency improvements, or adding new production lines. Bangkok Bank will provide a mortgage loan of up to 100 percent of the purchase price of the machinery, which can be either sourced in Thailand or imported. The loan carries an interest rate of MLR (6.875 percent as of January 31, 2008) which will be available for a term of up to five years. The bank has an initial target of Baht 1 billion and customers can apply for the loan until June 30, 2008. “The automotive parts industry is growing rapidly and has high potential,” said Mr. Virasak. “Exports by Thailand’s automobile manufacturers are growing by an average of 20-30 percent per year and domestic production is also strong, with total output of 1.3 million vehicles in 2007, 1.45 million in 2008, 1.7 million in 2009, and 2 million in 2011. As auto makers expand their manufacturing capacity, associated industries including auto parts manufacturers are also expected to grow.” Mr. Virasak said the government was also supporting the industry through trade agreements, international tax agreements, the automotive industry master plan and by promoting investment in eco cars. Several auto makers are expanding their production capacity and introducing new models of cars. With investment in the industry expected to rise, auto part manufacturers will need to purchase new machinery to expand their production lines. “The new loan reflects Bangkok Bank’s strategy to provide a focused approach to key industries. We have staff with industry expertise who can provide advice to SMEs on their capital requirements. Since 2000, Bangkok Bank has introduced a number of new SME loan products, including the Ruamjai Pattana Loan for SMEs, Bualuang Loan for SMEs, Energy Saving loans and the Machine Fund. Some of these have been provided in conjunction with the government and all of the loans have been well received by entrepreneurs.” Customers interested in the Bualuang SMEs — Machine Loan for the Automotive Parts Industry can apply at any Bangkok Bank branch or business center nationwide. Details are also available from Bualuang Phone on 1333 or 0-2645-5555.